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1. Which of the following is an example of a business decision maker? A. Politician's election consultant B. Church pastor C. Manager of a non-profit program D. Business manager of a consumer goods product E. All of the above
2. The acronym, RFP, stands for _____ and refers to the document used to invite research firms to propose ideas for addressing the research needs of the organization. A. request for proposal B. recency frequency population C. research firm proposal D. recognition of problem E. recently formed protocols
3. The problem or opportunity that requires a business decision on the part of the decision maker is called a _____. A. management dilemma B. research problem C. challenge D. measurement approach E. return on business investment
4. Northwest Airlines applied mathematical models to determine which customers in its database were currently responsible for most of its profitability and which customers were not currently profitable but had similar characteristics to the most profitable customers. Northwest Airlines utilized _____ to identify these customers. A. computer programming B. data warehousing C. customer relationships management D. data mining E. intervention
5. The main purpose of a(n) _____ is to share company information and computing resources among internal audiences. A. decision support system B. intranet C. extranet D. internet E. data warehouse
6. A private network that uses Internet protocols and the public telecommunication system to share an organization's information, data, or operations the external suppliers, vendors, or customers is called a(n) _____. A. decision support system B. intranet C. extranet D. internet E. data warehouse
7. The question, "Should we do business research?" is often stimulated by data from a(n) _____. A. data warehouse B. intelligence system C. decision support system D. intranet E. both b and c
8. Which of the following is not a possible source of business intelligence? A. Competitor web sites B. Government reports C. Business research reports D. Clipping services E. All of the above are possible sources
9. Recordings of public proceedings, speeches by elected officials, and information on agency web sites are all examples of business intelligence available from _____ sources. A. competitive B. cultural C. government D. demographic E. technological
10. Intuitive decision makers tend to base business decisions on _____. A. business research B. secondary data C. primary data D. proprietary research E. all of the above
11. Visionary decision makers tend to base business decisions on _____. A. proprietary business research B. instinct C. secondary data D. past experience E. all of the above
12. Which tier in the hierarchy of business decision makers sees research as the fundamental first step in any business venture? A. Base tier B. Middle tier C. Top tier D. All of the above E. None of the above
13. Minute Maid sees research as the fundamental first step in any business decision and it created proprietary methods for conducting research. At what level of the hierarchy of business decision makers does Minute Maid operate? A. Top tier B. Middle tier C. Base tier D. Foundation tier E. Information tier
14. Some organizations make decisions based on past experience, instincts, or secondary data searches. These organizations are operating at the _____ tier of the hierarchy of business decision makers. A. top B. middle C. base D. pinnacle E. information
15. Business research may be considered unnecessary when _____. A. management has insufficient resources to conduct an appropriate study B. the risk associated with the decision at hand is low C. the information is applicable to the critical decision D. both a and b E. both a and c
16. When a business research firm provides both quantitative and qualitative methodology expertise and conducts all phases of research from planning to execution and reporting, the firm is considered a(n) _____ firm. A. internal B. interactive C. proprietary D. omnibus E. full-service
17. Which term below refers to a research program or technique that is owned by a single firm? A. Proprietary B. Omnibus C. Full-service D. Limited service E. Internal
18. All of the following terms except _____ can be used to describe custom full-service business research firms? A. ad hoc research B. custom-designed research C. custom researchers D. syndicated panel E. all of the above can be used to describe custom full-service business research firms
19. What type of research firm dominates the small research firms operated by a single person or a small staff? A. Proprietary B. Syndicated C. Full-service D. Specialty E. Internal
20. Specialty firms can establish expertise in all of the following areas except _____. A. methodology B. process C. industry D. incentives E. geographic region
21. Researchers who study retail shoppers by tracing their footsteps and recording the amount of time a shopper spends reading labels are conducting _____ studies. A. survey B. interviewing C. observation D. focus groups E. empathic
22. Specialty research suppliers who provide the screening and recruiting of probability samples for a wide range of survey studies are called _____. A. sampling specialists B. field business specialists C. headhunters D. screeners E. syndicators
23. A _____ study combines one or a few questions from several business decision makers who need information from the same population. A. syndicated B. proprietary research C. omnibus D. sampling E. full-service
24. Which of the following is an advantage of using an omnibus study? A. Ability to reach a convenience sample of consumers B. Cost of less than $2000 per question C. Ability to receive full-service research services D. Ability to receive results in 24-48 hours E. All of the above
25. What type of research do trade associations generally conduct? A. Basic research B. Practical research C. Applied research D. Ad hoc research E. All of the above
26. Which of the following is not a required characteristic of good research? A. Clearly defined purpose B. Detailed research process C. Focused on theory D. Thorough research design E. Recognition of limitations
27. Good research follows the standards of the ______. A. American Manufacturers Association B. scientific method C. scientific management D. American Association of Public Opinion Research E. FTC
28. Which term refers to procedures for generating replicable research that are systematic and empirically-based? A. Scientific management B. Total quality management C. Scientific method D. Theoretical research E. Applied research
29. For the limitations of a study to be revealed appropriately, the researcher should _____. A. compare the desired procedure with the actual procedure B. compare the desired sample with the actual sample C. ensure that the recommendations do not exceed the scope of the study D. address the time restraints imposed on the study E. both a and b
30. Which characteristic of good research involves distinguishing between the organization's symptoms, its problems, the manager's perception of the problems, and the research problem? A. Clearly defined purpose B. Detailed research process C. Thorough research design D. High ethical standards E. Justifiable conclusions
31. Which of the following is not included in the statement of the decision problem? A. Scope B. Limitations C. Precise meaning of all terms D. Desired procedures E. Organizational symptoms
32. The procedures used in the research are specified in the _____ section of a research report. A. problem statement B. research design C. limitations D. findings E. conclusions
33. Researchers have the ethical responsibility to guard the welfare of _____. A. research participants B. clients C. colleagues D. organizations to which they belong E. all of the above
34. Which of the following considerations is not a potential ethical dilemma for a researcher? A. Psychological harm to respondents B. Physical harm to respondents C. Omission of significant procedural details in the research process D. Invasion of privacy E. Exploitation of respondents
35. The goal of the research design is to maximize the _____ of the results. A. objectivity B. subjectivity C. profitability D. morality E. reportability
36. Are any of the following not a good reason for managers to be well grounded in basic research? A. Do research for themselves. B. Make competent decisions on whether to make or 'buy' research from researchers outside the firm. C. Define their own needs and form researchable questions for the specialist. D. Judge the logic of a research approach. E. All are good reasons.
37. Which of the following types of research is conducted to evaluate specific courses of action or forecast current or future values? A. Reporting studies B. Explanation studies C. Description studies D. Prediction studies E. Observation studies
38. Which of the following is not an example of research? A. An experiment in product taste preferences. B. A statistical analysis of errors in the recording of inventories. C. A test of cognitive dissonance theory and major investment decisions. D. A simulation of the information flows in an organization. E. A decision to change the firm's method of accounting.
39. Applied research: A. Has little direct impact on policy decisions. B. Is problem directed but not decision directed. C. Is problem directed and closely related to policy or action needs. D. Calls for a hypothesis to initiate the research. E. Is usually conducted in the laboratory.
40. Data was analyzed and it showed that: a salesperson's performance is directly and positively related to the salesperson's level of education. This is an example of what type of research? A. Descriptive B. Reporting C. Predictive D. Explanatory E. Experimental
41. A predictive study showed that a company would gain a 10% market share if it reduced its product price by $5. The study assumed competitors would keep the prices of their products unchanged. A. This study can be used in all situations. B. The company should reduce its product price by $5. C. As the company cannot control the price decisions of its competitors so the study is not very useful. D. A new study focusing on a smaller number of variables is required. E. Market fluctuations make this study important for prediction.
42. An estimate of next year's market share is an example of what type of research? A. Descriptive B. Reporting C. Predictive D. Explanatory E. Longitudinal
43. Which of the following is pure rather than applied research? A. Sleep duration, as impacting work efficiency. B. Disruption of cognitive ability under stress. C. The relationship between leadership traits and corporate success. D. Work towards the discovery of a possible new element. E. Comparing brand logos after a change.
44. Most firms in the business research industry are _____. A. syndicated data providers B. small firms and one-person shops C. large full-service suppliers D. wholesale distributors E. advertising agencies
45. Ethnographic research is based on the study of _____. A. anthropology B. marketing C. economics D. statistics E. psychology
46. Research methods courses recognize that students preparing to manage any function need training in a disciplined process for conducting an inquiry of a management dilemma. Which of the following is not a reason for such training? A. More government intervention. B. Information overload. C. Greater computing power and speed. D. More government cooperation through information sharing. E. Shifting global centers of economic activity and competition.
47. A business intelligence system in conjunction with business research often has the task of: A. Create an platform for surveillance of corporate competitors. B. Discovering opportunities that influence strategic decisions. C. Generate numerous elements of data organized for retrieval. D. Relying heavily on those methodologies that proved themselves in the last several decades of the 20th century—surveys and focus groups. E. None of the above.
48. In the early part of your career, you will likely be asked to perform a number of reporting studies. Many managers consider the execution of such studies: A. An excellent way for new employees to become familiar with their employer and its industry. B. The least valuable type of research. C. A way to discover answers to the questions who, what, when, where, and sometimes, how. D. The primary means to control a process once we can explain and predict it. E. Essential to evaluate specific courses of action or forecast current or future values.
Essay Questions
49. The hierarchy of business decision makers categorizes organizations based on how they use business research to make decisions. List and explain the three levels in the hierarchy.
50. Sometimes business research may be unnecessary. Explain when this could occur.
51. What is the difference between applied research and basic research?
52. What characteristics of research are associated with the standards of the scientific method?
Chapter 01 Research in Business Answer Key
Multiple Choice Questions
1. Which of the following is an example of a business decision maker? A. Politician's election consultant B. Church pastor C. Manager of a non-profit program D. Business manager of a consumer goods product E. All of the above
Level: moderate
2. The acronym, RFP, stands for _____ and refers to the document used to invite research firms to propose ideas for addressing the research needs of the organization. A. request for proposal B. recency frequency population C. research firm proposal D. recognition of problem E. recently formed protocols
Level: easy
3. The problem or opportunity that requires a business decision on the part of the decision maker is called a _____. A. management dilemma B. research problem C. challenge D. measurement approach E. return on business investment
Level: easy
4. Northwest Airlines applied mathematical models to determine which customers in its database were currently responsible for most of its profitability and which customers were not currently profitable but had similar characteristics to the most profitable customers. Northwest Airlines utilized _____ to identify these customers. A. computer programming B. data warehousing C. customer relationships management D. data mining E. intervention
Level: moderate
5. The main purpose of a(n) _____ is to share company information and computing resources among internal audiences. A. decision support system B. intranet C. extranet D. internet E. data warehouse
Level: easy
6. A private network that uses Internet protocols and the public telecommunication system to share an organization's information, data, or operations the external suppliers, vendors, or customers is called a(n) _____. A. decision support system B. intranet C. extranet D. internet E. data warehouse
Level: easy
7. The question, "Should we do business research?" is often stimulated by data from a(n) _____. A. data warehouse B. intelligence system C. decision support system D. intranet E. both b and c
Level: moderate
8. Which of the following is not a possible source of business intelligence? A. Competitor web sites B. Government reports C. Business research reports D. Clipping services E. All of the above are possible sources
Level: moderate
9. Recordings of public proceedings, speeches by elected officials, and information on agency web sites are all examples of business intelligence available from _____ sources. A. competitive B. cultural C. government D. demographic E. technological
Level: moderate
10. Intuitive decision makers tend to base business decisions on _____. A. business research B. secondary data C. primary data D. proprietary research E. all of the above
Level: moderate
11. Visionary decision makers tend to base business decisions on _____. A. proprietary business research B. instinct C. secondary data D. past experience E. all of the above
Level: moderate
12. Which tier in the hierarchy of business decision makers sees research as the fundamental first step in any business venture? A. Base tier B. Middle tier C. Top tier D. All of the above E. None of the above
Level: easy
13. Minute Maid sees research as the fundamental first step in any business decision and it created proprietary methods for conducting research. At what level of the hierarchy of business decision makers does Minute Maid operate? A. Top tier B. Middle tier C. Base tier D. Foundation tier E. Information tier
Level: easy
14. Some organizations make decisions based on past experience, instincts, or secondary data searches. These organizations are operating at the _____ tier of the hierarchy of business decision makers. A. top B. middle C. base D. pinnacle E. information
Level: easy
15. Business research may be considered unnecessary when _____. A. management has insufficient resources to conduct an appropriate study B. the risk associated with the decision at hand is low C. the information is applicable to the critical decision D. both a and b E. both a and c
Level: moderate
16. When a business research firm provides both quantitative and qualitative methodology expertise and conducts all phases of research from planning to execution and reporting, the firm is considered a(n) _____ firm. A. internal B. interactive C. proprietary D. omnibus E. full-service
Level: easy
17. Which term below refers to a research program or technique that is owned by a single firm? A. Proprietary B. Omnibus C. Full-service D. Limited service E. Internal
Level: moderate
18. All of the following terms except _____ can be used to describe custom full-service business research firms? A. ad hoc research B. custom-designed research C. custom researchers D. syndicated panel E. all of the above can be used to describe custom full-service business research firms
Level: easy
19. What type of research firm dominates the small research firms operated by a single person or a small staff? A. Proprietary B. Syndicated C. Full-service D. Specialty E. Internal
Level: moderate
20. Specialty firms can establish expertise in all of the following areas except _____. A. methodology B. process C. industry D. incentives E. geographic region
Level: moderate
21. Researchers who study retail shoppers by tracing their footsteps and recording the amount of time a shopper spends reading labels are conducting _____ studies. A. survey B. interviewing C. observation D. focus groups E. empathic
Level: moderate
22. Specialty research suppliers who provide the screening and recruiting of probability samples for a wide range of survey studies are called _____. A. sampling specialists B. field business specialists C. headhunters D. screeners E. syndicators
Level: moderate
23. A _____ study combines one or a few questions from several business decision makers who need information from the same population. A. syndicated B. proprietary research C. omnibus D. sampling E. full-service
Level: easy
24. Which of the following is an advantage of using an omnibus study? A. Ability to reach a convenience sample of consumers B. Cost of less than $2000 per question C. Ability to receive full-service research services D. Ability to receive results in 24-48 hours E. All of the above
Level: difficult
25. What type of research do trade associations generally conduct? A. Basic research B. Practical research C. Applied research D. Ad hoc research E. All of the above
Level: moderate
26. Which of the following is not a required characteristic of good research? A. Clearly defined purpose B. Detailed research process C. Focused on theory D. Thorough research design E. Recognition of limitations
Level: moderate
27. Good research follows the standards of the ______. A. American Manufacturers Association B. scientific method C. scientific management D. American Association of Public Opinion Research E. FTC
Level: easy
28. Which term refers to procedures for generating replicable research that are systematic and empirically-based? A. Scientific management B. Total quality management C. Scientific method D. Theoretical research E. Applied research
Level: easy
29. For the limitations of a study to be revealed appropriately, the researcher should _____. A. compare the desired procedure with the actual procedure B. compare the desired sample with the actual sample C. ensure that the recommendations do not exceed the scope of the study D. address the time restraints imposed on the study E. both a and b
Level: moderate
30. Which characteristic of good research involves distinguishing between the organization's symptoms, its problems, the manager's perception of the problems, and the research problem? A. Clearly defined purpose B. Detailed research process C. Thorough research design D. High ethical standards E. Justifiable conclusions
Level: easy
31. Which of the following is not included in the statement of the decision problem? A. Scope B. Limitations C. Precise meaning of all terms D. Desired procedures E. Organizational symptoms
Level: moderate
32. The procedures used in the research are specified in the _____ section of a research report. A. problem statement B. research design C. limitations D. findings E. conclusions
Level: easy
33. Researchers have the ethical responsibility to guard the welfare of _____. A. research participants B. clients C. colleagues D. organizations to which they belong E. all of the above
Level: easy
34. Which of the following considerations is not a potential ethical dilemma for a researcher? A. Psychological harm to respondents B. Physical harm to respondents C. Omission of significant procedural details in the research process D. Invasion of privacy E. Exploitation of respondents
Level: moderate
35. The goal of the research design is to maximize the _____ of the results. A. objectivity B. subjectivity C. profitability D. morality E. reportability
Level: moderate
36. Are any of the following not a good reason for managers to be well grounded in basic research? A. Do research for themselves. B. Make competent decisions on whether to make or 'buy' research from researchers outside the firm. C. Define their own needs and form researchable questions for the specialist. D. Judge the logic of a research approach. E. All are good reasons.
Level: easy
37. Which of the following types of research is conducted to evaluate specific courses of action or forecast current or future values? A. Reporting studies B. Explanation studies C. Description studies D. Prediction studies E. Observation studies
38. Which of the following is not an example of research? A. An experiment in product taste preferences. B. A statistical analysis of errors in the recording of inventories. C. A test of cognitive dissonance theory and major investment decisions. D. A simulation of the information flows in an organization. E. A decision to change the firm's method of accounting.
39. Applied research: A. Has little direct impact on policy decisions. B. Is problem directed but not decision directed. C. Is problem directed and closely related to policy or action needs. D. Calls for a hypothesis to initiate the research. E. Is usually conducted in the laboratory.
40. Data was analyzed and it showed that: a salesperson's performance is directly and positively related to the salesperson's level of education. This is an example of what type of research? A. Descriptive B. Reporting C. Predictive D. Explanatory E. Experimental
41. A predictive study showed that a company would gain a 10% market share if it reduced its product price by $5. The study assumed competitors would keep the prices of their products unchanged. A. This study can be used in all situations. B. The company should reduce its product price by $5. C. As the company cannot control the price decisions of its competitors so the study is not very useful. D. A new study focusing on a smaller number of variables is required. E. Market fluctuations make this study important for prediction.
42. An estimate of next year's market share is an example of what type of research? A. Descriptive B. Reporting C. Predictive D. Explanatory E. Longitudinal
43. Which of the following is pure rather than applied research? A. Sleep duration, as impacting work efficiency. B. Disruption of cognitive ability under stress. C. The relationship between leadership traits and corporate success. D. Work towards the discovery of a possible new element. E. Comparing brand logos after a change.
44. Most firms in the business research industry are _____. A. syndicated data providers B. small firms and one-person shops C. large full-service suppliers D. wholesale distributors E. advertising agencies
Level: easy
45. Ethnographic research is based on the study of _____. A. anthropology B. marketing C. economics D. statistics E. psychology
Level: difficult
46. Research methods courses recognize that students preparing to manage any function need training in a disciplined process for conducting an inquiry of a management dilemma. Which of the following is not a reason for such training? A. More government intervention. B. Information overload. C. Greater computing power and speed. D. More government cooperation through information sharing. E. Shifting global centers of economic activity and competition.
47. A business intelligence system in conjunction with business research often has the task of: A. Create an platform for surveillance of corporate competitors. B. Discovering opportunities that influence strategic decisions. C. Generate numerous elements of data organized for retrieval. D. Relying heavily on those methodologies that proved themselves in the last several decades of the 20th century—surveys and focus groups. E. None of the above.
48. In the early part of your career, you will likely be asked to perform a number of reporting studies. Many managers consider the execution of such studies: A. An excellent way for new employees to become familiar with their employer and its industry. B. The least valuable type of research. C. A way to discover answers to the questions who, what, when, where, and sometimes, how. D. The primary means to control a process once we can explain and predict it. E. Essential to evaluate specific courses of action or forecast current or future values.
Level: moderate
Essay Questions
49. The hierarchy of business decision makers categorizes organizations based on how they use business research to make decisions. List and explain the three levels in the hierarchy. The three levels in the hierarchy are the base tier, the middle tier, and the top tier. Organizations in the base tier are called intuitive decision makers because they use past experience and intuition to make decisions. The middle tier organizations are called standardized decision makers because they base some decisions on business research and others are past experience. The top tier is called the visionaries because they consider research to be the foundation of any good decision. This group may also develop specific proprietary methods of research.
Level: moderate
50. Sometimes business research may be unnecessary. Explain when this could occur. Business research may be unnecessary in several situations. If the value of addressing the problem is less than the cost of the research, research is unnecessary. If the organization suffers from constraints of time, money, or skill, the research may not be appropriate. If the necessary information cannot be collected in a manner that is applicable to the research, it may not be necessary. Finally, if the decision is of low-risk anyway, research is unnecessary.
Level: moderate
51. What is the difference between applied research and basic research? Applied research is research that has a practical problem-solving emphasis and is conducted to reveal answers to specific questions related to action, performance, or policy needs. Basic research is designed to solve problems of a theoretical nature with little direct impact on strategic or tactical decisions.
Level: easy
52. What characteristics of research are associated with the standards of the scientific method? Exhibit 1-8 lists several characteristics of research that should result in good research following the standards of the scientific method. These include a clearly defined purpose, detailed research process, thorough research design, high ethical standards, discussion of limitations, adequate analyses, unambiguous findings, justifiable conclusions, and an honest assessment of the researcher's experience.
Level: moderate